GEOVERA SPECIALTY INSURANCE COMPANY FLORIDA HOMEOWNERS WIND ONLY UNDERWRITING MANUAL

GEOVERA SPECIALTY INSURANCE COMPANY
FLORIDA HOMEOWNERS WIND ONLY
UNDERWRITING MANUAL
These Underwriting Guidelines may, without prior notice, be revised from time to time at the sole
discretion of GeoVera Specialty Insurance Company.
GeoVera Specialty Insurance Company
Florida Homeowners Wind Only Manual
TABLE OF CONTENTS
SUB
Introduction
General Description
Binding Authority and Issuance
Policy Term and Premiums
Application
Inspection Reports
Rating Criteria
Transfer or Assignment
Property Address Changes
Cancellations
Payment Options
1
1
2
2
2
2
3
3
3
4
4
Highlights of Policy Sublimits and Exclusions
Ineligible Risks
Eligibility Criteria
Coverage Summary
Property Coverages and Available Decreases and Increases
Additional Coverages
Surcharges and Credits
Additional Insureds and Interests
Deductibles
Forms Listing
5
6
7
8
9
10
10
11
11
12
FL-Page i
Effective January 2014
GeoVera Specialty Insurance Company
Florida Homeowners Wind Only Manual
1.
INTRODUCTION
This GeoVera Specialty Insurance Company Wind Only Underwriting Manual contains
the rules for the Homeowners Wind Only program, as well as rules governing eligibility
and underwriting requirements, including premium/rating factors.
Any questions regarding limits, deductibles, coverages, acceptability or any other area not
specifically addressed in this manual must be referred directly to GeoVera Specialty
Insurance Company (also referred to as “GeoVera Specialty” or “Company”).
The information in this manual is non-binding and does not amend or otherwise affect the
terms, conditions or coverages of any insurance policy issued by GeoVera Specialty
Insurance Company.
All terms and conditions are contained in the policy itself.
2.
GENERAL DESCRIPTION
The GeoVera Specialty Wind Only product provides coverage only for direct physical loss
for the peril of windstorm or hail to the Property Coverages provided, which are: dwelling,
other structures, personal property and loss of use. There is no coverage for other perils.
This product excludes coverage for damage to the interior of a building or the property
contained within a building unless direct force of the windstorm or hail first damages the
building, causing an opening through which the rain, snow, sleet, hail, sand or dust enters
and causes damage.
The product includes a hurricane and an other windstorm/hail deductible which are a
percentage of the Coverage A limit. The hurricane deductible is a calendar year deductible,
and, if due to multiple events, the calendar year hurricane deductible is exhausted, a $1,000
deductible will apply to all subsequent hurricane claims. The other windstorm/hail
deductible is a per occurrence deductible and will apply separately to each other windstorm
or hail claim.
This policy does not provide coverage for losses to the dwelling caused by a peril other
than windstorm or hail, and is not intended to provide sufficient coverage to rebuild or
replace the dwelling in the event of a loss to the dwelling caused by a peril other than
windstorm or hail. This policy is intended to be sold with a standard homeowners
insurance policy which has excluded the peril of windstorm or hail. The producer and the
insured are solely responsible to carefully analyze any coverage gaps that may exist as a
result of unique forms covering the same dwelling.
The GeoVera Specialty Wind Only program uses proprietary GeoVera Specialty forms and
endorsements. The program issues the following Homeowners Wind Only policy form:
HO - Wind Only (WH-00-03). A Forms List at the end of this manual contains all valid
forms and endorsements.
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Effective January 2014
GeoVera Specialty Insurance Company
Florida Homeowners Wind Only Manual
3.
BINDING AUTHORITY AND ISSUANCE
A.
Binding authority rests solely with GeoVera Specialty Insurance Company. Policy
issuance is completed by the program administrator or designated service center.
B.
The company will suspend binding of coverage for new business and for increases in
coverage when the following conditions exist, or earlier, at its discretion:
When a designated tropical storm or hurricane is located within the boundaries West
of 72 degrees W. longitude; and North of 15 degrees N. latitude; and South of 35
degrees N. latitude; and East of 95 degrees W. longitude. A designated tropical storm
or hurricane is a windstorm identified as a tropical storm or hurricane by the National
Oceanic Atmospheric Administration.
4.
POLICY TERM AND PREMIUMS
Annual policies (12 months) are issued. Premiums and terms are offered for a contiguous 12
month period.
The insured’s right to cancel is limited. In the limited circumstances where an insured will be
allowed to cancel, unearned premium will be refunded; however, in most instances, because the
insured will not have the right to cancel, the insured will have no right to a refund of unearned
premium. See Cancellations section below.
Premium financing is not permitted.
5.
APPLICATION
The Company requires a completed application submitted via the Residential
Homeowners Quote (RHQ) website.
The Company also requires a signed copy of the GeoVera Specialty RHQ application.
The application is completed on-line and printed in the agent’s office. The agent is
responsible for maintaining the completed signed application in their files for no less than
7 years.
6.
INSPECTION REPORTS
Inspection reports will be ordered at the discretion of the Company. In addition, the Company
may request proof of the roof inspection if it was indicated on the application that the roof was
inspected within the last 6 months. A roof inspection report should clearly indicate the age of
roof, remaining useful life of the roof, date of roof updates, if any, and the condition of the roof
(whether there are any visible signs of damage or deterioration). The inspection form must be
completed by a licensed (building or roofing) contractor.
The Company will rely on public records information to verify proper replacement cost.
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Effective January 2014
GeoVera Specialty Insurance Company
Florida Homeowners Wind Only Manual
7.
RATING CRITERIA
A. TERRITORY DEFINITIONS - Location Based On Zip Code and Distance To Coast
B. CONSTRUCTION DEFINITIONS
FRAME – wood or steel frame; exterior walls of wood or other combustible
construction, including wood-iron clad, stucco on wood, or plaster on combustible
support, aluminum or plastic siding over frame, and brick veneer (up to 100%).
MASONRY – includes masonry and CBC (concrete/cinder block) construction.
C. INSURANCE TO VALUE – Pricing contemplates writing the amount of insurance at
100% of the replacement cost of the dwelling. Valuation methodology reflects, among
other factors, repair and replacement cost based on location, age, size of home and other
features, such as siding materials, number of levels, and attached structures.
The Company will calculate the minimum amount of insurance offered for each
property based on replacement cost. The amount of insurance offered can be increased
in $1,000 increments up to the program limits, but cannot be decreased below the
minimum.
8.
TRANSFER OR ASSIGNMENT
A policy may not be endorsed to effect assignment from one insured to another.
Name changes due to marriage, divorce, or death are permitted if accompanied by supporting
legal documentation.
9.
PROPERTY ADDRESS CHANGES
Changes to the property address are not permitted, except for corrections as a result of
typographical errors or address changes stipulated by the United States Postal Service
(USPS). Requests must be in writing with reason given for the address change. If the
change is the result of the USPS, then a copy of the USPS documentation must be
provided.
The policy will be re-underwritten based on the corrected property address, and any
resulting premium changes will be charged or credited as appropriate. If the policy is
ineligible based on corrected property address information, the policy will be cancelled
back to the current term effective date.
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GeoVera Specialty Insurance Company
Florida Homeowners Wind Only Manual
10.
CANCELLATIONS
Due to the seasonal nature of wind exposure, an insured’s right to cancel is limited to only
a narrow set of circumstances. Otherwise, as a general rule, an insured may not cancel the
policy after inception. The policy (new or renewal term) can only be cancelled (with
satisfactory evidence provided to GeoVera Specialty) in the following circumstances, in
which case unearned premium (that is, a pro rata refund) will be refunded to the insured:
A. Duplicate coverage exists with another company and satisfactory evidence is provided
within the initial 30 days of GeoVera’s new or renewal policy term;
B. The property is sold;
C. The insured is deceased;
D. There is a total loss to the property; or
E. GeoVera Specialty determines that the property is no longer insurable under its
program guidelines.
If the insured fails to pay the premium due for the policy term (“Policy Term Premium”) by
the required due date, the insured’s policy will be cancelled retroactively to the beginning
of the policy period. If the insured makes any changes to the policy after the policy
becomes effective (“Policy Changes”) which result in additional premium due (“Additional
Premium”), the Policy Changes will not take effect unless the Additional Premium is paid
by the required due date.
11.
PAYMENT OPTIONS
Full payment of the annual premium plus 100% of any applicable taxes and fees are paid at the
inception of the policy. No payment plans will be offered with the Wind Only product.
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GeoVera Specialty Insurance Company
Florida Homeowners Wind Only Manual
HIGHLIGHT OF POLICY SUBLIMITS AND EXCLUSIONS
The GeoVera Specialty Homeowners Wind Only Program uses the WH-00-03 policy form, which contains
many of the standard policy sublimits and exclusions specified in ISO’s HO-00-03 Special Form. However,
some coverages, sublimits and exclusions are unique, including, but not limited to, the following, which are
either included in the WH-00-03 policy form or added to the policy by way of endorsement.
Coverages
Asbestos or Lead
Contamination
Exterior Paint or
Waterproofing
Flooring
Limited Swimming Pool
Enclosure and Patio
Enclosure Coverage
Loss Assessment
Mobile Homes
Mold
Ordinance or Law
Roof Coverage
Sublimits or Exclusions
Excluded
Excluded
“Hard floor covering” limited to “room(s)” where loss or damage occurred
$5,000 per policy period total limit
WH-05-15 (11-09)
$5,000
Excluded
$5,000 per policy period total limit
25% of Coverage A
$10,000 per policy period total limit if roof
contains more than one layer of overlayment
WH-04-35 (11-09)
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Effective January 2014
Endorsement
Number
WH-05-25 (04-12)
GeoVera Specialty Insurance Company
Florida Homeowners Wind Only Manual
INELIGIBLE RISKS
Ineligible Exposures
Builders risk
Condemned or without public utility services
Construction other than Frame or Masonry
Converted commercial building
Conviction for arson or coverage-related crimes
Course of Construction
Dwellings or premises in need of maintenance or repair
EIFS construction
Farmettes or Ranchettes
Foreclosure, repossession, or bankruptcy in the past 5 years (filed, declared
or any kind of other involvement in such proceedings)
Foundation of stilts, pre-2002 concrete pilings/piers, post & pier, or
“unknown”
Four or more levels
Located on more than 5 acres
Log construction/siding
Mobile Homes, Modular Homes, Prefabricated Homes
More than 2 Family Units
Properties with 3 or more mortgages or loss payees
Roof condition – poor; roof is showing advanced signs of wear and tear and
has a remaining rooftop life expectancy of 1 year or less
Rural route property location addresses
Unconventional designed dwellings, including but not limited to berm,
geodesic, or underground homes
Uncorrected fire code violations
Undergoing renovation or reconstruction
Unrepaired damage
Wood stoves or Pellet stoves
Year built prior to 1945
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Effective January 2014
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
Not Eligible
GeoVera Specialty Insurance Company
Florida Homeowners Wind Only Manual
12.
ELIGIBILITY CRITERIA
To be eligible for this program, in addition to any other eligibility criteria otherwise set out in
these Underwriting Guidelines, the risk must fit the following criteria:







Frame or masonry construction
Coverage A between $100,000 - $1,000,000 in Broward, Collier, Lee, Miami-Dade, and
Palm Beach Counties
Coverage A between $100,000 - $850,000 in All Other Counties
Year built 1945 and newer
1 – 2 Family Units
3 levels or less
Acceptable roof condition. Acceptable roof conditions are defined as follows:
o
Like New:
The roof is new, nearly new, or like new. The overall integrity is excellent, and it is
showing no, or only the beginning stages of, wear and tear.
o
Like New but needing spot repairs:
The roof has the same overall condition as a “Like New” roof. However, this type
of roof requires some sort of repair. Repairs can range from replacing a couple of
shingles to numerous spot repairs (for various reasons) over any section of the roof
as long as the roof has a remaining life expectancy of 10+ years.
o
Worn but intact:
The roof shows normal wear and tear. The roof can be of any age, as long as the
integrity is still good and has a remaining life expectancy of 5+ years.
o
Worn but needs spot repairs:
The roof has the same overall condition as a “Worn but intact” roof. However, this
type of roof requires some sort of repair. Repairs can range from replacing a couple
of shingles to numerous spot repairs (for various reasons) over any section of the
roof as long as the roof has a remaining life expectancy of 2+ years.
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Florida Homeowners Wind Only Manual
13.
COVERAGE SUMMARY
A summary of the issuance levels, permitted increases, covered perils, and loss settlement terms are as
follows:
HO - Wind Only
Primary Usage
Coverage ADwelling
Coverage BOther Structures
Coverage CPersonal
Property
Coverage DLoss of Use
Coverage EPersonal
Liability
Coverage FMedical
Payments
Issued at
100% replacement cost
Issued at 10% of Coverage A
(Options to decrease to 2% or
5% of Coverage A)
Issued at 50% of Coverage A
(Option to decrease to 25% of
Coverage A)
Issued at 20% of Coverage A
(no decrease/increase)
(Options to decrease to 2% or 5%
of Coverage A)
Issued at 50% of Coverage A
(Option to decrease to 25% of
Coverage A)
HO - Wind Only
Rental/Vacant Usage
Issued at
100% replacement cost
Issued at 10% of Coverage A
(Options to decrease to 2% or 5%
of Coverage A)
Issued at 5% of Coverage A
(no decrease/increase)
Issued at 10% of Coverage A
Issued at 10% of Coverage A
(no decrease/increase)
(no decrease/increase)
No Coverage
No Coverage
No Coverage
No Coverage
No Coverage
No Coverage
Windstorm or Hail
Windstorm or Hail
Windstorm or Hail
Replacement cost protection
up to 125% of Coverage A
for dwellings 24 years of age
and newer
Replacement cost protection up
to 125% of Coverage A for
dwellings 24 years of age and
newer
Replacement cost protection up
to 125% of Coverage A for
dwellings 24 years of age and
newer
(via endorsement WH-82-01);
otherwise, 100% replacement
cost applies
(via endorsement WH-82-01);
otherwise, 100% replacement cost
applies
(via endorsementWH-82-01);
otherwise, 100% replacement cost
applies
Replacement cost;
ACV is not an option
Replacement cost;
ACV is not an option
Replacement cost;
ACV is not an option
Issued at 25% of A
Issued at 25% of A
Issued at 25% of A
Issued at $5,000
(no increases)
Issued at $5,000
(no increases)
Issued at $5,000
(no increases)
(via endorsement WH-04-35)
(via endorsement WH-04-35)
(via endorsement WH-04-35)
Peril Insured
Against
(Coverages A, B,
& C)
Loss settlement
on A & B
HO - Wind Only
Seasonal/Secondary/
Unoccupied Usage
Issued at
100% replacement cost
Issued at 10% of Coverage A
Loss settlement
on C
Ordinance or
Law
(Building Code)
Loss Assessment
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GeoVera Specialty Insurance Company
Florida Homeowners Wind Only Manual
14.
PROPERTY COVERAGES AND AVAILABLE DECREASES AND INCREASES
A.
COVERAGE A – DWELLING LIMIT
The Coverage A limit is shown on the declarations.
 Policies with dwellings 24 years of age and newer include replacement cost
coverage up to 125% of the Coverage A limit shown on the declarations;
otherwise, 100% replacement cost applies
 Coverage A limit may be adjusted by the company for inflation at renewal
B.
COVERAGE B – OTHER STRUCTURES LIMIT



C.
D.
Coverage B limit is issued at 10% of the Coverage A limit
Coverage B limit may be decreased to 2% or 5% of the Coverage A limit
o Credit applies when Coverage B limit is decreased to 2% or 5% of the
Coverage A limit. Credit percentage varies by distance to coast and hurricane
deductible.
No increases available
COVERAGE C – PERSONAL PROPERTY LIMIT
1)
For Primary, Seasonal, Secondary or Unoccupied Usage Types
 Coverage C limit is issued at 50% of the Coverage A limit
 Coverage C limit may be decreased to 25% of the Coverage A limit
o Credit applies when Coverage C limit is decreased to 25% of the Coverage A
limit. Credit percentage varies by distance to coast and hurricane deductible.
2)
For Rental or Vacant Usage Types
 Coverage C limit is issued at 5% of the Coverage A limit
 No increases or decreases available
3)
Personal Property Replacement Cost
 Personal property loss settlement is on a replacement cost basis.
 Endorsement WH-04-90 will be added to every policy for no additional cost.
COVERAGE D – LOSS OF USE
1)
For Primary Usage Type
 Coverage D limit is issued at 20% of the Coverage A limit
 No increases or decreases available
2)
For Seasonal, Secondary, Rental, Unoccupied or Vacant Usage Types
 Coverage D limit is issued at 10% of the Coverage A limit
 No increases or decreases available
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Effective January 2014
GeoVera Specialty Insurance Company
Florida Homeowners Wind Only Manual
15.
ADDITIONAL COVERAGES
A. LOSS ASSESSMENT – INCREASED LIMIT
 Policy includes $5,000 of coverage (extended via endorsement WH-04-35)
 No increases available
16.
SURCHARGES AND CREDITS
Premium credits and surcharges will be computed at various points in the rating calculation.
A. MITIGATION CREDIT/SURCHARGE

A credit or surcharge may apply to the policy depending on property risk
characteristics and mitigation features. The combination of year built, roof age, roof
type, roof shape, gable end bracing, opening protection, hurricane straps, and
secondary water resistance determine the appropriate credit or surcharge.
B. NUMBER OF LEVELS SURCHARGE


A surcharge applies when the number of levels in the dwelling is 2 or more
Applicable surcharge is based on number of levels and distance to coast
C. ROOF CONDITION CREDIT

A credit applies to qualified risks that meet the following conditions:
o Roof inspection completed in the last 6 months
o Roof condition is “Like New”; “Like New” is defined as a roof which is new,
nearly new or like new, the overall integrity of which is excellent, and is showing
no, or only the beginning stages of, wear and tear
o Roof age is 11 years or newer
D. SEASONAL OR SECONDARY SURCHARGE

A 5% surcharge applies to locations used as a seasonal or secondary residence.
E. VACANT HOME SURCHARGE

A 20% surcharge applies to locations that are vacant or unoccupied.
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Florida Homeowners Wind Only Manual
17.
ADDITIONAL INSUREDS AND INTERESTS
1) Persons or organizations having an insurable interest in the residence premises may be added
to the policy for protection on Coverages A and B. Attach endorsement WH-04-41
(Additional Insured) and specify the name and address of the party.
2) Persons or organizations—in addition to a mortgagee—having an interest in the residence
premises will be notified of cancellation or non-renewal of the policy. Attach endorsement
WH-04-10 (Additional Interests) and specify name and address of the party.
18.
DEDUCTIBLES
A.
HURRICANE DEDUCTIBLE



Hurricane deductible is issued at 2% of the Coverage A limit
Option to increase Hurricane Deductible to 3%, 5% or 10% of the Coverage A limit
o A credit applies when the Hurricane Deductible is increased to 3%, 5% or 10% of
the Coverage A limit. Credit is determined based on location, distance to coast,
selected hurricane deductible, and year built.
No decreases available
The hurricane deductible is a calendar year deductible. Additionally, if, due to multiple
events, the calendar year hurricane deductible is exhausted, a $1,000 deductible will apply
to all subsequent hurricane claims.
B.
OTHER WINDSTORM/HAIL DEDUCTIBLE


The other windstorm/hail deductible is equal to the Hurricane Deductible
No increases or decreases available
The other windstorm/hail deductible is a per occurrence deductible and will apply
separately to each other windstorm or hail claim.
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Effective January 2014
GeoVera Specialty Insurance Company
Florida Homeowners Wind Only Manual
FORMS LISTING PAGE
MANDATORY ENDORSEMENTS:
Number
WH-00-03 (08-11)
CLIL (01-12)
USPRIV (09-07)
US-05-05 (09-07)
US-09-26 (02-12)
WH-01-09 (08-11)
WH-03-51 (11-09)
WH-04-35 (11-09)
WH-04-90 (01-11)
WH-04-91 (11-09)
Name
Wind Only Form
Signatures of GeoVera Specialty Officers
GeoVera Specialty Privacy Policy
Policy Fee Disclosure
Important Notice – Cancellation Restrictions
Special Provisions - Florida
Calendar Year Hurricane Deductible – Florida
Loss Assessment Coverage
Personal Property Replacement Cost
Inflation Guard Coverage
WH-05-04 (11-09)
Seasonal/Secondary Usage
WH-05-10 (11-09)
Non-Owner Occupied Dwelling
WH-05-15 (11-09)
WH-05-25 (04-12)
Hard Floor Covering Limitation
Multi-Layer Roof Limitation
WH-82-01 (11-09)
Replacement Cost Protection Up To 125%
WH-09-35 (11-13)
Important Notice – New Policy Terms
Description
Homeowners Wind Only Policy Form
Clarifying Endorsement
Attached at New Business and Renewal
Amendatory Endorsement
Amendatory Endorsement
Increase to $5,000
Amendatory Endorsement
Amendatory Endorsement
Amendatory Endorsement
(Seasonal Secondary Usage)
Amendatory Endorsement
(Rental Usage)
Amendatory Endorsement
Amendatory Endorsement
Extends Replacement Cost up to 125% for
dwellings 24 years of age and newer
Clarifying Endorsement for dwellings 25 years of
age and older
OPTIONAL ENDORSEMENTS:
Number
WH-04-10 (11-09)
WH-04-41 (11-09)
Name
Additional Interest
Additional Insured
Description
Acknowledges other’s interests in the premises
Extends some coverages to others
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